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A CASE FOR REGULATING GIG-BASED WORK

Syllabus:

GS 2:

• Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

GS 3:

• Employment and Development

Why in the News?

The 2024 Lok Sabha Elections highlighted issues like unemployment and inflation, emphasizing the need for targeted employment strategies, particularly for women. The India Employment Report (IER) 2024 further underscores the importance of addressing these challenges to improve economic conditions and family welfare in India.

Source: Mint

Introduction

• Karnataka’s Initiative: Karnataka’s draft Bill aims to improve the welfare of gig workers by mandating fair contracts and income security, addressing critical issues faced by this workforce.
• Myth Dispelling: The legislation challenges prevalent myths about gig work, such as the idea of being one’s own boss, highlighting the eed for regulatory intervention.
• Worker Status: The Bill strengthens the position of platform workers who are neither considered employees nor enjoy the flexibility of independent contractors, providing them with essential protections.
• Algorithm Control: By addressing algorithmic control, the Bill ensures transparency and fairness in work allocation, allowing workers to regain some control over their work lives.
• Legal Framework: The draft Bill proposes a structured legal framework to protect gig workers, setting a precedent for other states to follow in improving labour conditions.

Myth of Being One’s Own Boss

• Algorithmic Control: Contrary to the idea of having no boss, gig workers are controlled by algorithms and team managers, who dictate their work hours, tasks, and performance metrics.
• Enforced Compliance: Algorithms enforce compliance by monitoring worker performance, leading to deactivation or penalties if workers fail to meet set criteria, stripping them of autonomy.
• Shaikh Salauddin’s Insight: According to Shaikh Salauddin from the Indian Federation of App-based Transport Workers, gig workers struggle to understand algorithmic decisions, feeling trapped in a maze.
• Contractual Realities: Digitally generated terms and conditions that workers must agree to highlight the lack of true independence, as every aspect of their work is closely monitored and controlled.
• Bill Provisions: Karnataka’s Bill mandates aggregators to disclose algorithmic parameters used in work allocation and personal data usage, breaking the control these companies have over workers.
• Worker Empowerment: By ensuring transparency in algorithmic decisions, the Bill empowers workers to understand and challenge unfair practices, improving their work conditions.

Myth of Flexibility

• Employer-Controlled Flexibility: Despite claims of flexible work arrangements, all flexibility lies with the employer, with workers having little control over their schedules and earnings.
• Incentive Schemes: Payment structures and incentive schemes force workers to adhere to mandatory login hours and specific performance criteria, limiting their flexibility.
• Income Security: The draft Bill introduces provisions for fair contracts, income security, and the right to refuse work without facing sanctions, enhancing worker protection.
• Non-Employee Status: While not considered employees, gig workers do not enjoy the freedom of independent contractors, necessitating legal protections to ensure fair treatment.
• Legal Safeguards: The Bill’s provisions for income security and fair contracts aim to balance the power dynamics between aggregators and gig workers, ensuring better working conditions.
• Worker Rights: By granting gig workers the right to refuse work without penalties, the Bill acknowledges their need for flexibility and fair treatment, challenging industry norms.

Myth of Part-Time Work

• Full-Time Dependence: Contrary to the perception of gig work as part-time, a significant majority of gig workers, such as cab drivers and delivery workers, rely entirely on gig work for their daily income.
• Study Findings: A study by PAIGHAM and the University of Pennsylvania found that 96% of cab drivers and 90.7% of delivery workers depend on gig work for their livelihood.
• Long Work Hours: Gig workers often work long hours, with taxi drivers averaging over 11 hours and delivery workers 10 hours daily, highlighting the need for comprehensive social security.
• Mandatory Social Security: The Bill mandates social security for gig workers, providing an umbrella of schemes to assist them through old age, health shocks, and other life events.
• State Government Leadership: States like Rajasthan, Karnataka, Jharkhand, Tamil Nadu, Haryana, and Telangana are taking the lead in enacting legislation for gig workers, setting a positive trend.
• Private Sector Accountability: The Bill emphasizes that social security for workers should be financed not just by the state but also by the market, holding private actors accountable for worker welfare.

India’s Stand on Platform Work

• G-20 Endorsement: Despite endorsing a progressive statement on platform worker rights at the G-20, India’s Code on Social Security delinks gig workers from essential labor protections.
• State-Level Initiatives: State governments are taking proactive steps to improve gig worker welfare, with Rajasthan passing the first legislation and other states following suit.
• Importance of Social Security: The Bill demonstrates that social security for workers should be a shared responsibility between the state and private sector, ensuring comprehensive protection.
• Areas for Improvement: While the Bill is a significant step forward, it needs to address critical issues such as minimum wage, occupational safety, health, working hours, and collective bargaining rights.
• Worker Mobilization: The law provides a foundation for gig workers to mobilize and advocate for more rights, empowering them to push for better conditions and protections.
• Future Legislation: The Karnataka Bill sets a precedent for future legislation to build on, aiming for a more equitable and fair gig economy that balances flexibility with security for workers.

Challenges:

• Opaque Decision-Making: Algorithms control gig workers’ tasks, schedules, and performance metrics, leading to a lack of transparency and fairness in work allocation.
• Worker Penalties: Failure to comply with algorithmic demands results in penalties or deactivation, creating job insecurity and stress for workers.

• Non-Employee Status: Gig workers are not considered employees, leaving them without essential labor protections such as minimum wage, health benefits, and occupational safety.
• Flexibility Myth: The perceived flexibility of gig work is often an illusion, as workers must adhere to strict schedules and performance criteria set by employers.

• Full-Time Work Misconception: Many gig workers rely entirely on platform work for their income, working long hours to meet financial needs, contrary to the belief that it is part-time.
• Income Instability: The gig economy’s payment structure, reliant on variable incentives, creates financial instability and makes it difficult for workers to plan and save.

• Inadequate Coverage: Existing social security frameworks do not adequately cover gig workers, leaving them vulnerable to economic shocks, health issues, and lack of retirement benefits.
• State Responsibility: Current state-led initiatives are insufficient to fully address the social security needs of gig workers, requiring broader and more robust policies.

Way Forward

• Algorithmic Disclosure: Mandate platforms to disclose algorithmic parameters used in work allocation, ensuring transparency and fairness in how tasks and opportunities are distributed.
• Worker Autonomy: Empower gig workers by providing them with information on how their data is used and how decisions affecting their work are made.

• Worker Protections: Amend labor laws to include gig workers, providing them with minimum wage guarantees, health benefits, and occupational safety standards.
• Contract Fairness: Enforce fair contracts that clearly outline rights, obligations, and protections for gig workers, ensuring they are not exploited by platform companies.

• Stable Earnings: Implement policies that ensure stable and predictable income for gig workers, reducing dependency on volatile incentive structures.
• Financial Support: Provide financial assistance and incentives for gig workers to help them cover costs and improve their economic stability.

• Inclusive Coverage: Develop comprehensive social security schemes that cover health, retirement, and unemployment benefits for gig workers.
• Public-Private Partnership: Foster collaborations between the state and private sector to fund and manage social security programs, ensuring sustainable support for gig workers.

Conclusion

Regulating gig-based work is crucial for ensuring fair treatment and economic security for platform workers. The Karnataka draft bill, along with similar efforts by other states, represents a significant step towards integrating gig workers into the formal economy, enhancing their rights and social security.

Source:The Hindu

Mains Practice Question:

Discuss the challenges faced by gig workers in India and evaluate the potential impact of state-level regulations, such as Karnataka’s draft bill, on improving their working conditions and social security.

Associated Article:

https://universalinstitutions.com/14268-2/